I don’t want to ruin your day, but as a parent, it’s our responsibility to make sure our children are looked after in your will. Nobody thinks about dying before their kids, but it does happen.
There is a common belief amongst young parents that only the wealthy or those with a large amount of assets require a Will, or it is something they will put in place when they purchase a house or when they reach retirement age. However, in my opinion, making a will is something every parent should put in place. Don’t forget that any life insurance and superannuation policies are also assets that will need to be distributed on your death.
So think about it, who do you want to be responsible for looking after your child’s money?
Today’s families are complex with step parent issues, divorced grandparents and same sex couples so it is important that as a parent, you get to say how your child is raised, how their money is managed, and whom they live with!
If you don’t have a will in place, the following problems may occur:
- Young children could be taken into care whilst guardians are appointed.
- Your spouse or civil partner will not automatically inherit ALL of your estate.
- Common law partners may not receive anything at all.
- People outside of your immediate family are unlikely to benefit.
- Lengthy disputes and delays are likely to prevent your beneficiaries from receiving the funds they need to settle your estate and benefit in the way you intend.
So what is a testamentary guardian?
A person appointed by a parent’s Will to be responsible for making long-term care, welfare, and development decisions for their child. When both parents are deceased, the Testamentary Guardian will also be responsible for the child’s daily care and living conditions.
What do I need to do?
You should review your Will and ensure you appoint a guardian under the terms of your Will if you have children under 18 or plan to start a family in the future.
You should also consider the establishment of testamentary trusts under the terms of your Will and ensure you have adequate assets to provide for your children until they can begin to provide for themselves. This may involve contacting your financial advisor to arrange life insurance to cover any shortfall.
It is important that you consider the welfare of your children when preparing a Will. What is in their best interests rather than pleasing
Nobody likes to think about dying however preparing a Will ensures that your children are cared for, even if you are not around, surely that is the best reason to consider drafting a Will today!